Business Context and Reporting Period
Becton, Dickinson and Company (BD) filed this Form 8-K on November 4, 2015, to report financial results for the fourth fiscal quarter and full fiscal year ended September 30, 2015. The filing references a press release (Exhibit 99.1) containing detailed results and non-GAAP measures.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It focuses on the methodology for presenting non-GAAP measures rather than the raw data itself.
- Revenue Adjustments: Reported revenues are adjusted to exclude a write-down of deferred revenue related to the March 2015 acquisition of CareFusion Corporation. Growth rates are presented excluding foreign currency translation effects.
- Comparable Basis: Revenue and growth metrics are also presented on a "comparable" basis, assuming the CareFusion acquisition occurred at the start of fiscal 2015.
- Earnings Per Share (EPS): Adjusted EPS excludes financing, transaction, integration, and restructuring costs from the CareFusion deal, amortization of acquisition-related intangibles, litigation charges, and the dilutive impact of shares issued for the acquisition.
Material Changes and Non-GAAP Methodology
Management highlights significant adjustments to facilitate period-to-period comparability due to the CareFusion acquisition:
- Revenue Impact: The acquisition caused a write-down of deferred revenue, lowering reported revenues for the periods. Non-GAAP measures remove this effect to show underlying operating results.
- EPS Impact: Prior year EPS is adjusted for amortization, R&D charges, employee termination costs, and pension charges to align with current year adjustments.
- Currency Impact: Growth rates and guidance exclude the impact of foreign currency translation to better reflect operational performance.
Guidance, Outlook, and Management Commentary
Management utilizes these non-GAAP measures for budget planning and performance evaluation against peer companies. The filing notes that BD provides estimated revenue growth and EPS guidance for fiscal year 2016, adjusted for anticipated amortization charges and foreign currency translation. However, the specific guidance figures are not included in this text.
Risks and Contingencies: Management cautions that non-GAAP results should not be considered in isolation or as a substitute for GAAP results, as excluded items may materially impact net income and cash flows.
Corporate Governance Update
On October 30, 2015, William A. Kozy, Executive Vice President and Chief Operating Officer, announced his decision to retire, effective March 31, 2016.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values on revenue, EPS, and cash flow, as they are not present in the 8-K text.
- Verify the reconciliation between GAAP and non-GAAP measures to understand the magnitude of the CareFusion acquisition adjustments.
- Confirm the specific fiscal 2016 revenue and EPS guidance figures referenced but not detailed in this filing.
- Monitor the transition plan for the Chief Operating Officer role following William A. Kozy's retirement in March 2016.